Cost of Acquisition Split After Demerger: 27.60% to Company, 72.40% to HEG Graphite

Following the NCLT-sanctioned demerger, shareholders must split their original cost of acquisition: 27.60% to HEG Advanced Materials and 72.40% to HEG Graphite.

Tue 29 Sep 2026

Cost of Acquisition Split to HEG Advanced Materials

27.60%

Cost of Acquisition Split to HEG Graphite Limited

72.40%

Share Allotment Ratio

1 share of HEG Graphite for every 1 share held

Allotment Date

September 11, 2026

Record Date

September 7, 2026

What was shared

The company issued guidance to equity shareholders on how to apportion the cost of acquisition of their shares between HEG Advanced Materials Limited (formerly HEG Limited) and HEG Graphite Limited, following the Composite Scheme of Arrangement.

Background

• NCLT, Indore Bench sanctioned the Scheme by order dated August 13, 2026.
• The Scheme covers demerger of the Demerged Undertaking into HEG Graphite Limited, and amalgamation of Bhilwara Energy Limited into the Company.
• Under Clause 8, shares were allotted on September 11, 2026: 1 fully paid-up equity share of INR 2 each of HEG Graphite for every 1 equity share of INR 2 each held in the Company, as on the record date of September 7, 2026.

The apportionment

• HEG Advanced Materials Limited: 27.60%
• HEG Graphite Limited: 72.40%
• Total: 100.00%

What this means for a shareholder

If you held shares before the demerger, your original purchase cost is not doubled. It is split in the above ratio between the two companies' shares. That split cost becomes the base for calculating capital gains whenever you sell either holding. The date of acquisition of the HEG Graphite shares is taken as the date you acquired the original shares.

Tax position stated

The company states the demerger satisfies conditions under Section 2(35) of the Income-tax Act, 2025, and is tax neutral in the hands of shareholders of the Demerged Company under the exemption in Section 70(k).

The company notes this is general guidance only, that determining cost of acquisition is an involved exercise, that shareholders should take professional advice, and that regulatory or judicial authorities could take a different view.

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